February 15, 2023
beat forecasts in the fourth quarter with revenue of $33.4 million and adjusted earnings of 23 cents per share; Reports agreements with a leading chip company in the automotive market and a leading manufacturer of headphones for 3D sound
[בתמונה למעלה: מוצרים המנוהלים באמצעות שבבים הכוללים קניין רוחני של סיוה]
The provider of connectivity and smart sensing technologies Siva (CEVA) reported today (Wednesday) on Revenues of $33.4 million in the fourth quarter, a decrease of 2% compared to the corresponding quarter. Adjusted net income (on a non-GAAP basis) increased by 6% to $5.6 million. Bottom line, adjusted earnings per share totaled 23 cents, 5 cents above analysts’ forecasts.
In the division by sources of income, the revenues from the sale of licenses, services and development tools for chip design increased by 5% compared to the corresponding quarter to 22.5 million dollars, about 67% of the total revenues; Whereas the revenues from royalties decreased by 14% compared to the corresponding quarter to 10.9 million dollars, about 33% of the total revenues.
2022: 23% growth in revenues from licensing agreements
Referring to 2022 as a whole, Siva’s revenues increased by 10% to a record of $134.6 million. Revenues from the sale of licenses and development tools for chip design increased by 23% to a record of $89.3 million, and revenue from royalties decreased by 9% to $45.4 million. The net profit (Non-GAAP) amounted to 18.8 million dollars, an increase of 23% compared to 2021.
22 agreements per quarter
During the fourth quarter, Siva signed 22 agreements for technology licensing and chip design, of which 6 were with new customers. The agreements were for the supply of technologies for a variety of markets, including 5th generation cellular modems, smart audio for a leading manufacturer of headphones for spatial and 3D sound, UWB connectivity for a leading chip company for contactless digital keys for cars, and Wi-Fi 6 and Bluetooth connectivity for a variety of electronic and IoT products.
By geographic segmentation, 9 of the 22 agreements were signed with customers in China, 6 agreements in Europe, 4 in the USA, and 3 in Asia-Pacific. In all of 2022, Siva signed 76 new licensing agreements, compared to 73 agreements in 2021.
Agreements with two leading manufacturers
The CEO of Siva, Amir Panoush, said upon the publication of the financial results: “The solid results of the fourth quarter ended a strong year for Siva against the background of challenging macro conditions. During the quarter we signed a large number of licensing agreements, including strategic agreements with leading manufacturers in the automotive market and the wearable audio device market. In terms of royalties, our revenues reflect the general weakness in the consumer goods market and the high inventory levels, which affected the demand in the smartphone and IoT products market. Since taking office at the beginning of the year, I have been encouraging Siva’s strength and long-term growth prospects. Our intellectual property technologies in the fields of connectivity and smart sensing are unique and meet an essential need of many companies in the chip industry and the consumer electronics market. Siva is well prepared to realize this potential and create value for all shareholders.’
1.7 billion products per year
CFO of Siva, Yaniv Arieli, added: “The record revenues in 2022 reflect the growing demand for our range of technologies. Revenues from licensing agreements and development services for chip design increased by 23% – a significant achievement in view of the uncertainty prevailing in the markets in which we operate. In royalties, revenues in the base station and IoT product category reached a record $29.2 million and the number of products supplied in this category in 2022 reached a record 1.4 billion. Alongside this growth, the continued decline in sales of 4th generation devices by a major manufacturer affected royalties from the smartphone market. In total, during the past year the number of products based on Siva technologies reached a record of 1.7 billion. We ended the year with a strong balance sheet and no debt, which will allow us to continue with organic and inorganic investments to drive long-term growth and profitability.”
Published in the categories: News, Semiconductors
